In the long run, firms in a monopolistically competitive market
A. usually earn positive economic profits.
B. always earn monopoly profits.
C. earn zero economic profits.
D. usually earn economic losses.
Answer: C
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Expansionary fiscal policy leads to a ________
A) leftward shift of the labor supply curve B) rightward shift of the labor demand curve C) leftward shift of the labor demand curve D) rightward shift of the labor supply curve
Due to the recession in 2008, firms decreased their profit expectations. As a result, there was a ________ shift in the ________ loanable funds curve
A) rightward; supply of B) leftward; demand for C) rightward; demand for D) rightward, supply of
Economists believe that
a. people who choose to promote the interests of others cannot be acting rationally in their own self-interest b. people show concern only for those whom they know personally c. charitable donations would disappear if tax deductions for charitable giving were eliminated d. the notion of self-interest rules out concern for others e. concern for the welfare of others is consistent with the concept of self-interest
The cross-price elasticity of demand is useful for determining which pairs of commodities serve as substitutes for each other
a. True b. False